College GP$ for Middle School

1. College GP$ for Middle School The views expressed are mine, and not necessarily those of the U.S. Department of Education, Tennessee Department of Education, Middle Tennessee State University, the Atlanta Fed, the Federal Reserve System, Tennessee Jump$tart Coalition, or other organizations involved in this program.

2. Topics • Personal Finance Concepts • Goal Setting Strategies • Online Education and Career Resources • Common Core and Tennessee Standards • Resources • Strategies

3. Objectives: The teacher will….. Be able to explain the value of increasing human capital.Be able to identify resources that help students identify their career interest. Be able to identify resources that help students explore careers.Be able to explain short-, medium, and long-term goals. Be able to explain the basics of budgeting, saving, and investing.

4. Education and Employment Source(s): Federal Reserve Bank of Atlanta - EconSouth – First Quarter 2011 – Cap in Hand: The High Cost of Higher Education http://www.frbatlanta.org/pubs/econsouth/11q1.cfm

5. Directions • Listen to all directions and be given complete instructions before starting! Source(s): Federal Reserve Bank of St Louis - It’s Your Paycheck Curriculum – Unit A: Know Your Dough – Lesson 1: Invest in Yourself http://www.stlouisfed.org/education_resources/its-your-paycheck-curriculum-unit/

6. Directions Don’t start yet! • Fold the piece of construction paper in half, shorter edges together. • Crease the center fold. • Open the page. • Fold the bottom edge to the middle crease. Crease the fold. • Open the page. • Fold the top edge to the middle crease. Crease the fold. • The paper should now have four sections. Source(s): Federal Reserve Bank of St Louis - It’s Your Paycheck Curriculum – Unit A: Know Your Dough – Lesson 1: Invest in Yourself http://www.stlouisfed.org/education_resources/its-your-paycheck-curriculum-unit/

7. Directions • Starting from one end of the paper, count down three rectangles. Print your first name in large letters in the rectangle. • Turn the paper upside-down. Again count down three rectangles and print your first name in large letters in the rectangle. • Fold the paper to create a tent with the name displayed on both sides. • Don’t start yet! Source(s): Federal Reserve Bank of St Louis - It’s Your Paycheck Curriculum – Unit A: Know Your Dough – Lesson 1: Invest in Yourself http://www.stlouisfed.org/education_resources/its-your-paycheck-curriculum-unit/

8. Group 1 Directions • Each of you will remain seated to produce your own name tent, using only one hand, your nondominant hand—that is, the hand with which you do not write—to produce the name tent. You must keep your dominant hand behind your back. • Don’t start yet! Source(s): Federal Reserve Bank of St Louis - It’s Your Paycheck Curriculum – Unit A: Know Your Dough – Lesson 1: Invest in Yourself http://www.stlouisfed.org/education_resources/its-your-paycheck-curriculum-unit/

9. Group 2 Directions • Each of you will remain seated to produce your own name tent, using only one hand, your dominant hand—that is, the hand with which you write—to produce the name tent. You must keep your nondominant hand behind your back. • Don’t start yet! Source(s): Federal Reserve Bank of St Louis - It’s Your Paycheck Curriculum – Unit A: Know Your Dough – Lesson 1: Invest in Yourself http://www.stlouisfed.org/education_resources/its-your-paycheck-curriculum-unit/

10. Group 3 Directions • Each of you will remain seated to produce your own name tent, using both hands. • Don’t start yet! Source(s): Federal Reserve Bank of St Louis - It’s Your Paycheck Curriculum – Unit A: Know Your Dough – Lesson 1: Invest in Yourself http://www.stlouisfed.org/education_resources/its-your-paycheck-curriculum-unit/

11. Group 4 Directions • Each of you will produce your own name tent while standing and using only one hand—the nondominant hand—to produce the name tent. You must keep your dominant hand behind your back. You may not use the desk, table, chair or wall. • Don’t start yet! Source(s): Federal Reserve Bank of St Louis - It’s Your Paycheck Curriculum – Unit A: Know Your Dough – Lesson 1: Invest in Yourself http://www.stlouisfed.org/education_resources/its-your-paycheck-curriculum-unit/

12. Additional Directions • 60 seconds • Track how many in your group completes in 15, 30, 45 and 60 seconds • Start in 3…2…1! Source(s): Federal Reserve Bank of St Louis - It’s Your Paycheck Curriculum – Unit A: Know Your Dough – Lesson 1: Invest in Yourself http://www.stlouisfed.org/education_resources/its-your-paycheck-curriculum-unit/

13. Productivity Results Source(s): Federal Reserve Bank of St Louis - It’s Your Paycheck Curriculum – Unit A: Know Your Dough – Lesson 1: Invest in Yourself http://www.stlouisfed.org/education_resources/its-your-paycheck-curriculum-unit/

14. Human Capital • Human capital is the knowledge, talent and skills that people possess. People are able to invest in their human capital by going to school, pursuing additional training and developing skills. Source(s): Federal Reserve Bank of St Louis - It’s Your Paycheck Curriculum – Unit A: Know Your Dough – Lesson 1: Invest in Yourself http://www.stlouisfed.org/education_resources/its-your-paycheck-curriculum-unit/

15. Invest in Yourself • An important investment that students make in their future is their investment in human capital—their efforts to acquire and improve human capital. There is a very strong correlation between the level of human capital a person possesses and the amount of income the person earns. Source(s): Federal Reserve Bank of St Louis - It’s Your Paycheck Curriculum – Unit A: Know Your Dough – Lesson 1: Invest in Yourself http://www.stlouisfed.org/education_resources/its-your-paycheck-curriculum-unit/

16. Who’s Who • Group 4 represents those with the smallest investment in human capital—high school dropouts. • Group 1 represents those who graduate from high school. • Group 2 represents those who pursue additional training following high school—associate’s degrees, bachelor’s degrees or trade school. • Group 3 represents those who pursue advanced degrees. Source(s): Federal Reserve Bank of St Louis - It’s Your Paycheck Curriculum – Unit A: Know Your Dough – Lesson 1: Invest in Yourself http://www.stlouisfed.org/education_resources/its-your-paycheck-curriculum-unit/

17. The Bottom Line • People with more skills, education and training tend to be more productive and, as a result, earn higher incomes. Source(s): Federal Reserve Bank of St Louis - It’s Your Paycheck Curriculum – Unit A: Know Your Dough – Lesson 1: Invest in Yourself http://www.stlouisfed.org/education_resources/its-your-paycheck-curriculum-unit/

18. Education Pays… Source(s): Bureau of Labor Statistics – Current Population Survey • http://www.bls.gov/emp/ep_chart_001.htm

19. Trends: Higher Education COST OF HIGHER EDUCATION • TN Board of Regent schools (as of June 21, 2013): • 1.4% - 6.0% tuition/fee increases • Tuition/fee cost for 15 hours per semester • TBR university: $7,561 • TBR community college: $3,787 • 2011 College Grads (Bachelor’s Degree): • Nationalavg student loan debt = $26,600 (66% grads with debt) • Tennesseeavg student loan debt = $20,703 (53% grads with debt) Source(s): Tennessee Board of Regents: http://www.tbr.edu/student_information/default.aspx?id=8205 Project on Student Debt: http://projectonstudentdebt.org/state_by_state-data.php

20. …But There Is A Cost Source(s): Federal Reserve Bank of Atlanta - EconSouth – First Quarter 2011 – Cap in Hand: The High Cost of Higher Education http://www.frbatlanta.org/pubs/econsouth/11q1.cfm

21. Trends: Higher Education COST OF HIGHER EDUCATION Fall 2012 - Spring2013 $19,124 X 4 years = $76,496 Fall 2011 – Spring 2012 $18,710 x 4 years = $74,840 $1,656 (2.21%) Increase 2012 Inflation = 1.7% 2011 Inflation = 3.2% Source(s): Middle Tennessee State University Financial Aid http://www.mtsu.edu/financialaid/coa_finaid.php

22. CollegeforTN.gov

23. Video Clip • Katrina’s Classroom: Financial Lessons From A Hurricane • Video: Back to School – 4:19-5:35 Source(s): Federal Reserve Bank of Atlanta - Katrina’s Classroom: Financial Lessons from a Hurricane – Video: Back to School http://www.frbatlanta.org/edresources/classroomeconomist/ - Katrina’s Classroom Tab – Lesson 4

24. Career Statistics and Outlook • Bureau of Labor Statistics (BLS) – Statistics by Occupation http://www.bls.gov/bls/occupation.htm • BLS Occupational Outlook Handbook http://www.bls.gov/oco/

25. Who is the Most Unemployed? • Which age group accounted for 25% of the unemployed during the recession? • 16- to 24-year-olds • 25- to 34-year-olds • 35- to 44-year-olds • 45- to 54-year-olds • 55-year-olds and older Source(s): Federal Reserve Bank of Atlanta - EconSouth – First Quarter 2012 – Who is the Most Unemployed? Factors Affecting Joblessness. http://www.frbatlanta.org/pubs/econsouth/12q1_summary_employment_recession.cfm

26. Factors Affecting Joblessness • 16- to 24-year-olds: • 14% of labor force • 25% of unemployed • Peak unemployment rate =19.6% (Spring 2010) • 16- to 19-year olds: • 24.4% unemployment (2011) • Black teens – peak unemployment rate of 48.7% Source(s): Federal Reserve Bank of Atlanta - EconSouth– First Quarter 2012 – Who is the Most Unemployed? Factors Affecting Joblessness. http://www.frbatlanta.org/pubs/econsouth/12q1_summary_employment_recession.cfm

27. Factors Affecting Joblessness • Challenges for young workers: • Fewer workers retiring; less positions opening up • Ever-rising levels of student debt • Average 2010 student loan debt = $25,250; up 5% from previous year • Feb 2012 survey: 24% unpaid job to gain experience; 25% moving back in with parents • Losing out on valuable work experiences to gain critical life and work experiences Source(s): Federal Reserve Bank of Atlanta - EconSouth– First Quarter 2012 – Who is the Most Unemployed? Factors Affecting Joblessness. http://www.frbatlanta.org/pubs/econsouth/12q1_summary_employment_recession.cfm

28. Who is the Most Unemployed? • At the height of the recession, what was the unemployment rate gap between college graduates and individuals without a high school diploma? • 2% Gap • 5% Gap • 7% Gap • 10% Gap Source(s): Federal Reserve Bank of Atlanta - EconSouth– First Quarter 2012 – Who is the Most Unemployed? Factors Affecting Joblessness. http://www.frbatlanta.org/pubs/econsouth/12q1_summary_employment_recession.cfm

29. Factors Affecting Joblessness • At height of recession, unemployment rates: • College graduates = 5% • Less than high school diploma = 15.9% • January 2012 unemployment rate (25-year-olds+): • College graduates = 4.2% • High school graduates = 8.4% • Less than high school diploma = 13.1% Source(s): Federal Reserve Bank of Atlanta - EconSouth– First Quarter 2012 – Who is the Most Unemployed? Factors Affecting Joblessness. http://www.frbatlanta.org/pubs/econsouth/12q1_summary_employment_recession.cfm

30. Factors Affecting Joblessness Source(s): Federal Reserve Bank of Atlanta - EconSouth– First Quarter 2012 – Who is the Most Unemployed? Factors Affecting Joblessness. http://www.frbatlanta.org/pubs/econsouth/12q1_summary_employment_recession.cfm

31. U.S. Unemployment Rates (November 2013) Source(s): Bureau of Labor Statistics Labor Force Statistics: http://data.bls.gov/timeseries/LNS14000000 Bureau of Labor Statistics Local Area Unemployment Statistics Map: http://data.bls.gov/map U.S. Unemployment Rate Nov 2013 = 7.0%

32. Tennessee County Unemployment Rates (November 2013) Tennessee Unemployment Rate July 2013 = 8.5% Source(s): Bureau of Labor Statistics Labor Force Statistics: http://data.bls.gov/timeseries/LNS14000000 Bureau of Labor Statistics Local Area Unemployment Statistics Map: http://data.bls.gov/map

33. The Labor Force • Labor Force = Employed + Unemployed • Labor Force • People within the working age (16 to retirement age) who are employed or are unemployed and seeking work • Employed • Worked (full or part time) during the past week • Unemployed • Individuals who actively looked for work during last four weeks Source(s): Federal Reserve Bank of St. Louis – The Story of Unemployment Online Course http://www.stlouisfed.org/education_resources/story-of-unemployment-online-course/

34. Out Of The Labor Force • People who did not work in the past week and did not look for work in the past four weeks • Full-time students • Unpaid homemakers • Retirees • Confined to an institution, such as a nursing home or a mental or correctional facility Source(s): Federal Reserve Bank of St. Louis – The Story of Unemployment Online Course http://www.stlouisfed.org/education_resources/story-of-unemployment-online-course/

35. Calculating Unemployment Rate • Unemployment rate = # of unemployed / total labor force • Example: • In Someplaceville, 4,000,000 people are working and 250,000 are not working but looking for work. What is the unemployment rate? • Total labor force = 4,000,000 + 250,000 = 4,250,000 • Unemployment rate = 250,000 / 4,250,000 = .0625 (6.25%) Source(s): Federal Reserve Bank of St. Louis – The Story of Unemployment Online Course http://www.stlouisfed.org/education_resources/story-of-unemployment-online-course/

36. Scenarios: In or Out of Labor Force? RANDALL: I suffered a stroke last year and live in a nursing home now. I visit my son, Alvin, often because he lives right up the street. About twice a week, we build bird houses, and he sells them at local fairs when he has time. I go when I can because I like to let people know those bird houses are worth every penny we ask for them! Randall is: In the Labor Force Out of the Labor Force Employed Unemployed Source(s): Federal Reserve Bank of St. Louis – The Story of Unemployment Online Course http://www.stlouisfed.org/education_resources/story-of-unemployment-online-course/

37. Scenarios: In or Out of Labor Force? AVA: I have six kids, ranging in age from 4 to 22. And I'm very fortunate to have an extended family that helps me out—a lot. I'm very active with my church, and I volunteer at the soup kitchen every other Friday night. I'm also a nurse, and I work full-time at the local hospital. Ava is: In the Labor Force Out of the Labor Force Employed Unemployed Source(s): Federal Reserve Bank of St. Louis – The Story of Unemployment Online Course http://www.stlouisfed.org/education_resources/story-of-unemployment-online-course/

38. Scenarios: In or Out of Labor Force? KEISHA: I'm a sixth-grader and I love to paint. I've even won a few art competitions at my school! I'm also a HUGE roller coaster fan. I'm saving every cent I can to go to the new park that just opened in Florida. So far, I've made some good money doing yardwork for my neighbors, and I've even sold a few paintings. Keisha is: In the Labor Force Out of the Labor Force Employed Unemployed Source(s): Federal Reserve Bank of St. Louis – The Story of Unemployment Online Course http://www.stlouisfed.org/education_resources/story-of-unemployment-online-course/

39. Scenarios: In or Out of Labor Force? TY: I was laid off from my factory job three years ago. I searched for a job nonstop the first year, but I couldn't find anything. The second year, I had a landscaping job with a friend's company, but that was only for the summer. So here I am three years later and still no job. I'm so frustrated, I've stopped looking. Ty is: In the Labor Force Out of the Labor Force Employed Unemployed Source(s): Federal Reserve Bank of St. Louis – The Story of Unemployment Online Course http://www.stlouisfed.org/education_resources/story-of-unemployment-online-course/

40. Inflation

41. How Much Is Your Money Worth?

42. Online Resources • New Money http://www.newmoney.gov

43. YOUR Dreams….. Let’s do a thought/dreaming exercise together…..

44. Short, Medium, and Long-Term Goals • Short-term goals are those that can be achieved in one year or less. • Medium-term goals are those that can be achieved in more than one but less than five years. • Long-term goals are those that take more than five years to achieve.

45. Questions